Are they allowed to do this?

MM3_2

I've been off sick since September 2004 and as a result have only been able to make a payment of £50 per month on my halifax credit card. Then recently we discovered we were being overpaid tax credits, so our benefits have dropped drastically (tax credits have halved). This means I could no longer make the £50 payment. The Halifax card services have been harrassing me by phone (they call all the time demanding money I just don't have). They referred me to Payplan who have just sent through a pack and advised me to send the halifax an income and expenditure statement and letter, which I have yet to do. I advised the Halifax that I am in the process of doing this but in the meantime couldn't make a payment because our basic expenditure exceeded our income. We are currently waiting for a housing benefit rent review to be completed.

Today I checked my Halifax bank account and found they have taken over £300 out of my account. I telephoned them and was told it was for arrears on my credit card. I cannot get through to the collections department because they are closed today. I cannot afford for them to take this money when we are already struggling to manage on the benefits we receive at the moment. What are my rights? Can I demand this money be returned?

I have four children, my husband is self-employed but has been unable to work as he's had to care for me and the children. This really puts us under strain financially and I'm sat here in floods of tears as I just don't know how we are going to cope now they've taken this money.

matrix999

Hello MM3 and Welcome to MSE!

Yo have come to the right place for help and advice. I would advise you to contact your local CAB to ask about whether the Halifax has the right to just dip into your current account and take the money

It would also be helpful if you could post your incommings and outgoings so that more experienced MSE can advice you where you can make cuts and save money.

Good Luck!

MM3_2

Thanks Matrix - where do I post my incommings and outgoings for people to comment on?

Feel so frustrated by it all, tbh. All our creditorss have been great because of my ill health, except the Halifax who seem determined to harrass me until I crack! I'm 31 weeks pregnant too, which doesn't help - bloody hormones! I still haven't stopped crying since I discovered what they've done about 1 1/2 hours ago :eek:

Spendalot_2

Suggest that you get a new bank account away from Halifax.

Did you have a direct debit set up on your account? Not sure if this makes any difference.

I sympathise with you, this is a terrible thing to have done. Hopefully someone will come along soon who can tell you if this is legal or not.

Turning_into_scrooge

CCCS advised me to go to any other bank and open up a basic cash card account to take control over my money as the bank can dip into any other account you have with them and take all your money. I chose Nationwide who have been absolutely brill. Regarding the phone calls you are getting from Halifax CC, they did the same to me and even refused to deal with me only by letter. I emailed the OFT and gave them all the details who passed it onto another dept. The phone calls stopped immediatly. I actually had proof that they had phonned me before the 9am allowed time. Go and see CAB they may be able to get your money back for you as the bank is NOT a priority debt. Your utillity bills are. The credit card debt is actually at the bottom of the list when it comes to your creditors, the bank are fully aware of this, that is why they have got in first. Have a look at https://www.nationaldebtline.co.uk as ther may be some downloadable information on this website you can use and good luck with it.

matrix999

MM3,

The best thing to do is post your incoming and outgoings on this thread and MSE will advise your where savings are to be made.

As Spendalot has said your should open a new bank account, just a basic one for access to money and paying bills.

I dealt with the CCCS when I was having problems http://www.cccs.co.uk there a charity and don't charge for helping you unlike other Debt Management Plans.
They will negotiate with your creditors and hopefully get them to freeze all interest and charges. After they have gave you a quick telephone interview they will set up a DMP Debt Management Plan where you will pay them a fixed amount each month and they will distribute the money to your creditors - If the creditors don't like the payments your offering they will re negotiate with them.

chillipepper_3

As far as i know the Halifax have the authority to access your account (I work for HBoS group) and I'm not sure if they can be forced to return the payment even with help from CAB, but do contact them.
The safest thing is to move your account elsewhere with immediate effect and seek some advice from the likes of payplan/cccs etc.
I do feel for you and it's things like this that make me ashamed to work in the financial industry especially when linked to the company in Question.

I hope things work out better for you all soon.

Joe_Bloggs

@Chillipepper and all.
Is there a prospect of Halifax continuing taking 'their' money when they see fit? This could cause the account to become overdrawn and incur the account holder further stress and financial penalty. Would reporting the card lost curtail any direct debit activity/ continuous payment authority?

J_B.

Xbigman

Are you now paid up on that card? If so try using it and if it works spend the money they took again.

Not an ideal solution but I sure as hell would do this.
Regards



X

[Deleted User]

If you have NOT signed any authority to let the Halifax take money from your current account -

Get your current account either closed with immediate effect or frozen - or move the money out to another account ASAP.

THEN contact Halifax and TELL them either they return the money immediately and that they have taken it WITHOUT your signed authority or you will report them for theft.

Get the name of the person you speak to and confirm with them the call is being taped.

Then report them for theft from your account if they fail to return the money. Do not be fobbed off by the police that it is a civil matter. It is not - only the debt side is civil.

Also - you need to invoke the Halifax complaints procedure and go thru that BEFORE you can go to the Banking Ombudsman. (Assuming you get nowhere with the complaints procedure).

No one has the right to help themselves to money from your current account if you have not signed any authority to that effect.

The only proviso that I can think of regarding this this is a Court Order or the Official Receiver.

MM3_2

Thanks everyone. I guess I need to start by moving my bank account. My problem is that I'm off sick with mental health problems and dealing with anything like this can be too much for me. I'd been doing really well sorting through things gradually, trying to get benefits sorted and stuff. But something like this really throws me. I will probably give CCCS a call tomorrow when they are open. I might be able to get my CPN (community psychiatric nurse) to help with sort some of these things out as well. My biggest challenge is going to be speaking to people without crying my eyes out!! I just really could do without the stress of it all. I have explained all of this to the Halifax on the phone and have been asking for months to setup a payment arrangement - but was told I couldn't because I have had one on the account once before. They finally referred me to Payplan but within days of me telling them I'm waiting for the pack from Payplan, they take this money from my account. It is so frustrating and just seems really unfair. I guess my credit card agreement allows them to do this (if what chillipepper says is correct) but that doesn't make it right.

Anyway, I haven't completed a full income and expenditure yet - but here is what I do have, which is our basic income and essential expenditure (this doesn't include debts that we have to negotiate payments on).

Income Monthly (Equivilent)
Child Benefit 221.87
Tax Credits 774.58
Housing Benefit 547.08 (Awaiting rent review)
Total Income 1543.53

Basic Expenditure
Rent 950
Council Tax (awaiting reassesment)
Gas 35
Electric 35
Water Charges 46 (including payment of arrears)
Housekeeping 600 (based on £138 per week for family of 6)
Petrol 80
Car Insurance 16.8
Children's Clothing 50
Telephone & ADSL 39
TV License 10
Total Personal Expenditure 1861.8